Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $1,000 Direct Materials Quantity Variance $2,000 Direct Labor Rate Variance $500 Direct Labor Efficiency Variance $3,000 Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? Adjusted Cost of Goods Sold will be $198,500. O The Cost of Goods Sold account will be debited. O The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Debit Credit Direct Materials Price Variance $1,000 Direct Materials Quantity Variance $2,000 Direct Labor Rate Variance $500 Direct Labor Efficiency Variance $3,000 Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? Adjusted Cost of Goods Sold will be $198,500. O The Cost of Goods Sold account will be debited. O The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 5CE: Yohan Company has the following balances in its direct materials and direct labor variance accounts...

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Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Direct Materials Price Debit Credit Variance $1,000 Direct Materials Quantity $2,000 Variance $500 Direct Labor Rate Variance $3,000 Direct Labor Efficiency Variance Unadjusted Cost of Goods Sold equals $200,000. Which of the following would be FALSE when the year-end closing entry is made? O The Cost of Goods Sold account will be debited. O Adjusted Cost of Goods Sold will be $198,500. The Direct Labor Rate Variance account will be debited. O The Direct Materials Price Variance account will be credited.
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